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2. Collegiate Rings produces class rings. Its best-selling model has a direct materials standard of 8 grams of a special alloy per ring. This special alloy has a standard cost of $64.00 per gram. In the past month, the company purchased 8,800 grams of this alloy at a total cost of $558,800. A total of 8,300 grams were used last month to produce 1,000 rings. Read the requirements Requirement 1. What is the actual cost per gram of the special alloy that Collegiate Rings purchased last month? (Round your answer to the nearest cent.) The actual cost per gram of the special alloy that Collegiate Rings purchased last month is Requirement 2. What is the direct material price variance? (Abbreviations used: DM = Direct materials) Begin by determining the formula for the price variance, then compute the price variance for direct materials. (Enter the variance as a positive number. Round interim calculations to the nearest cent and your variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U).) (1) (2) (3) DM price varlance (4) Requirement 3. What is the direct material quantity vanance? (Abbreviations used: DM = Direct materials) Determine the formula for the quantity variance, then compute the quantity variance for direct materials. (Enter the variance as a positive number. Round interim calculations to the nearest cent and your varlance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U).) (5) (6) (7) ) DM quantity variance (8) Requirement 4. How might the direct material price variance for the company last month be causing the direct material quantity variance? The (9) direct material price variance might mean that Collegiate Rings purchased a (10) As a result, the company (11) alloy than the standard allows. This accounts for the (12) quantity (efficiency) varlance. 1: Requirements 1. What is the actual cost per gram of the special alloy that Collegiate Rings purchased last month? 2. What is the direct material price variance? 3. What is the direct material quanuty variance? 4. How might the direct materlal price variance for the company last month be causing the direct material quantity variance? OOOO Standard hours allowed Actual price Standard price Actual quantity purchased Standard quantity allowed Actual quantity used (2) O Actual price Actual quantity purchased Actual quantity used O Standard hours allowed Standard price O Standard quantity allowed (3) O 1 (4) Actual price Actual quantity purchased Actual quantity used O Standard hours allowed Standard price O Standard quantity allowed Actual price Actual quantity purchased Actual quantity used O Standard hours allowed O Standard price O Standard quantity allowed (6) Actual price O Actual quantity purchased O Actual quantity used O Standard hours allowed O Standard price O Standard quantity allowed (8) 0 (9) o (7) O O Actual price Actual quantity purchased Actual quantity used Standard hours allowed Standard price Standard quantity allowed favorable unfavorable (10) O higher-quality alloy at a higher price O lower-quality alloy at a lower price (11) O had to use more 0 was able to use less (12) O unfavorable U favorable